Comparing Alphabet (NASDAQ:GOOGL) and Magnite (NASDAQ:MGNI)

Alphabet (NASDAQ:GOOGL) and Magnite (NASDAQ:MGNI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Alphabet and Magnite, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	10	26	4	2.85
Magnite	0	1	12	0	2.92

Alphabet currently has a consensus price target of $199.75, indicating a potential upside of 21.81%. Magnite has a consensus price target of $18.92, indicating a potential upside of 17.97%. Given Alphabet’s higher possible upside, research analysts clearly believe Alphabet is more favorable than Magnite.

Profitability

This table compares Alphabet and Magnite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphabet	28.60%	32.49%	23.52%
Magnite	2.62%	4.64%	1.25%

Volatility & Risk

Alphabet has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.73, meaning that its stock price is 173% more volatile than the S&P 500.

Valuation and Earnings

This table compares Alphabet and Magnite”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$359.71 billion	5.53	$100.12 billion	$8.97	18.28
Magnite	$674.62 million	3.36	-$159.18 million	$0.20	80.20

Alphabet has higher revenue and earnings than Magnite. Alphabet is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

40.0% of Alphabet shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 11.6% of Alphabet shares are owned by company insiders. Comparatively, 3.8% of Magnite shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Alphabet beats Magnite on 11 of the 15 factors compared between the two stocks.

About Alphabet

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.